Choice steer prices strengthened and gained nearly $7/cwt. to leave 5- Area Direct Steers averaging $227.90/cwt. for the week, which in turn pushed estimated feeding margins to average $272.06/head for the week compared to $109.82/head the prior week.
Sterling’s estimate for average packer margins for the week fell to an average -$50.59/head, against $163.37/head the prior week.
The Comprehensive Cutout was off $5/cwt. from the prior week to average $361.52/cwt. Sterling’s estimate for last week’s capacity utilization in fed plants continued to hover around 82%.
View the full Sterling Beef Profit Tracker for the week ending Dec. 13.
The Beef and Pork Profit Trackers are calculated by Sterling Marketing, Vale, Ore.
(Note: The Sterling Beef Profit Tracker calculates an average beef cutout value for the week in its estimates for feedyard and packer margins. Other prices in the weekly Profit Tracker also are calculated weekly averages. Feedyard margins are calculated on a cash basis only with no adjustment for risk management practices. The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs. Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)
